The resulting change in the quantity demanded is a five percent decrease.
<h3>What is the elasticity of demand?</h3>
Elasticity of demand measures the percentage change in quantity demanded in relation to the percentage change in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price.
percentage change in price = ($60 / $50) - 1 = 0.2 = 20%
percentage change in quantity demanded = -0.25 x 20% = -5%
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Answer:
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Answer:
Correct Answer:
A. An economic system is a way of organizing the production and distribution of goods and services in an entire economy.
Explanation:
Capitalism, which is an economic system in which a country's trade and industry are controlled by private owners for profit, rather than by the state helps in ensuring the adequate running of the country. <em>It is a method whereby goods and services are organized in an entire economy through private investments and firms.</em>
Answer:
A.selling common stock.
Explanation:
A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.
Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.
Acquisition is never an easy feat. One of the problems that was associated with the acquisition of Santa Isabel by Royal Ahold, was that in that year, Ahold's books went red. The reason for this was put on Santa Isabel.
<h3>What is an acquisition?</h3>
An acquisition in business refers to the purchase of majority stake in a company. This is known as a partial acquisition.
In some cases, there are 100% acquisitions. In this case, there was first a partial acquisition to the tune of 70%.
This translated to unwarranted legal battles for Royal Ahold who was asked to pay more for the remaining 30% by a minority shareholders.
The recommendations must come from a technical/financial analysis of what the opportunities are for Royal Ahold should they gain 100% control of the company.
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